Pimco's Gross: JPMorgan 'One of the Best-Run Banks'


One day after JPMorgan Chase announced that it had suffered a of at least $2 billion, Bill Gross, Pimco's managing director and co-CIO, told CNBC that it was still one of the “best-run banks in the world.”

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“It’s got $120 billion of Tier-1 capital,” he said. “That’s 10.5 percent, which is higher than the 9-percent U.S. average.”

JPMorgan's trading loss stemmed from a failed hedging strategy. The disclosure shocked many investors and sent the company's stock down 8 percent in trading on Friday.

Still, Gross stood by the bank's capital levels.

“So it’s a well-run bank and decently capitalized bank” he added. “I think we should ask the question and you have — should banks in general should be doing these types of trades?”

Gross said he would like to see Basel III regulation increase the level of bank equity and bank capital.

“What Pimco trusts is capital — the more capital the better and the less risk,” he said.